Growth Energy Chairman Says American Ethanol Well Positioned to Lower Gas Prices Today and in the Future

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Washington, DCPointing out that gas prices are up nearly 80 cents over the last year because of Middle East instability and growing demand for oil from China, Growth Energy Chairman Jeff Broin told the Senate Agriculture Committee today that American ethanol can reduce fuel prices for consumers both today and over the long term."What ethanol is doing today to lower gas prices is nothing compared to what it will do in the future if given the chance," Broin said. "The most important thing we can do is to follow through on the promise of the Renewable Fuel Standard. Although that law calls for 36 billion gallons of renewable fuels, the industry is being prevented from reaching that goal by a 30-year-old administrative rule limiting ethanol blending to 10 percent of the fuel supply. The ethanol industry has a roadmap for how we can help reach this goal to help consumers pay less at the pump, improve our energy security and improve our environment."

In his testimony, Broin, CEO of POET, the world’s largest producer of renewable fuel, explained that ethanol is already reducing prices at the pump and can cut fuel prices even more if alternative fuels had greater access to the market.

“What ethanol is doing today to lower gas prices is nothing compared to what it will do in the future if given the chance,” Broin said. “The most important thing we can do is to follow through on the promise of the Renewable Fuel Standard. Although that law calls for 36 billion gallons of renewable fuels, the industry is being prevented from reaching that goal by a 30-year-old administrative rule limiting ethanol blending to 10 percent of the fuel supply. The ethanol industry has a roadmap for how we can help reach this goal to help consumers pay less at the pump, improve our energy security and improve our environment.”

Broin noted that the “blend wall,” the artificial limit on the amount of ethanol that can be used in our fuel supply, has many consequences for America. First, because ethanol is limited to 10 percent, we are exporting lower-priced ethanol while importing more expensive foreign oil. Second, with the blend wall intact, the ethanol industry cannot provide any more relief to consumers suffering from climbing gasoline prices.